A bug bounty program is a deal offered by many websites and software developers by which individuals can receive recognition and compensation for reporting bugs, especially those pertaining to exploits and vulnerabilities.

(According to Wiki)

In simple manner it says you can earn money by hacking websites or softwares.

Many companies are concerned with their security. Thus they organize a BUG program where they let hackers to hack their websites.

In return the companies pay you.

The pay depends upon the vulnerabilities you get and your reporting methods.

Bug Hunt: Getting Started Penetration Testing Kindle EditionInfo -In order to test their security infrastructure, companies are increasingly turning to freelance security researchers to hunt for bugs - glitches in their systems with the potential to be exploited - and paying the ethical professionals who report them for removal.

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